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Gibraltar: Personal Taxation

Income Tax

Income tax is charged on eight types of income:

  1. Gains or profits from any trade, business, profession or vocation
  2. Gains or profits from employment, including allowances, perquisites or benefits in kind
  3. Dividends, interest, discounts (NB: interest received from a Gibraltar bank is normally exempt from tax, by concession)
  4. Pensions, charges, annuities, maintenance, alimony or any payment made to a wife under a court order or deed of separation
  5. Rents, royalties, premiums and any other profits arising from property
  6. The income of any person from the occupation of premises for residential purposes
  7. Capital sums in excess of 25% of the capital value of the pension received by an individual on retirement from any approved fund
  8. Dividends, interest, or emoluments of office accruing in, derived from or received in any place other than Gibraltar by a resident.

No tax is payable on the business profits of residents earned abroad and not remitted to Gibraltar. However there is a provision to tax 'constructive' overseas income, when a benefit is obtained in Gibraltar equivalent to the income.

Tax is charged on employment income on a current year basis through a 'PAYE'-style system; other types of income are assessed on a previous year basis, with special provisions for the opening and closing years of a source of income. The income tax year runs from 1st July to 30th June in the following year.

There are allowances for single and married persons, children, dependent relatives etc. Mortgage interest and life assurance premiums are deductible, as are pension contributions and building society interest (all of these subject to some limits and conditions).



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